Lawsuit Against Fairfax Financial Holdings, Ltd. Seeks Class Action Status
A lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Fairfax Financial Holdings, Ltd. (”Fairfax” or the “Company”) (NYSE:FFH) between March 24, 2004 and March 22, 2006, inclusive, (the “Class Period”).
The suit alleges that defendants violated federal securities laws by issuing a series of materially false statements in press releases and SEC filings. Specifically, defendants failed to disclose the following facts:
(i) defendants allowed Fairfax to enter into bogus reinsurance contracts with its captive subsidiaries, Odyssey Reinsurance Holdings Ltd. and Northbridge Financial;
(ii) defendants did not maintain adequate systems of internal operational or financial controls within Fairfax, such that the officers and directors of the Company could assure that its reported financial statements were true, accurate or reliable;
(iii) Fairfax’s statements and reports were not prepared in accordance with GAAP and SEC rules; and
(iv) defendants lacked any reasonable basis to claim that Fairfax was operating according to guidance endorsed by defendants, or that the Company could achieve such guidance.
If you are a member of the class, you may, no later than June 12, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
Filed under Class Action, General Law, Settlements
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